Luxury Import Market Slumps, Lexus Shines as Sole Bright Spot

In the first 11 months of 2025, China's imported vehicle sales declined by nearly 30% year-on-year, with the market size falling to less than half of its peak a decade ago. While most luxury brands have scaled back their import operations, Lexus emerged as the only imported luxury brand to achieve positive growth, selling approximately 180,000 units in China for the full year—accounting for nearly one-third of the entire imported car market. Its core model, the ES, contributed over 60% of total sales. Despite increased terminal discounts, Lexus faced no inventory pressure and maintained a stable pricing structure. Through cautious expansion, strict inventory control, and high residual values, Lexus has preserved channel stability and brand equity amid industry-wide downturns. Additionally, with other Japanese luxury brands like Infiniti and Acura exiting the Chinese market, Lexus has captured a portion of their customers' upgrade demand. In response to the growing trend toward electrification, Toyota has announced plans to begin local production of Lexus battery-electric vehicles in Shanghai by 2027, marking the start of its localized EV strategy.